J&J Pays almost $1 Billion for Cougar Biotechnology

Large pharmaceuticals companies are buying their smaller brethren to beef up product pipelines. But the recession is making many smaller drug companies ready for acquisition. For example, a Reuters news article says, "Drug maker Johnson & Johnson on Thursday [May 21] said it has agreed to acquire cancer drug developer Cougar Biotechnology, Inc., for about $970 million in cash in order to strengthen its oncology business. J&J said it will tender to purchase all outstanding shares of Cougar at $43 per share, which is about a 16 percent premium to their Nasdaq close of $36.98. … Cougar is currently conducting two pivotal-stage trials for abiraterone acetate, an experimental treatment for prostate cancer." Further, the article notes, "The global financial meltdown and consequent withering of financing options has forced many development-stage biotechnology companies to look for mergers or partnerships as a way to weather the downturn."

Mert Livingstone is the IAMC Active member with Johnson & Johnson, which ranks 29^th on the Fortune-500 list and 1^st on Fortune’s list of pharmaceuticals companies.

BASF’s U.S. headquarters in Mt. Olive, NJ Source: http://www.lera.com/projects/usnj/basf.htm

BASF Increases Green Energy Output; Plans New Louisiana Plant

A BASF plant in Suffolk, Va., recently acquired in the firm’s purchase of Ciba Holdings, is seeking to extend its rights to harvest methane gas from the city’s nearby landfill. A local economic development newsletter says, "BASF Suffolk is currently pursuing the long term gas rights from the SPSA Land Fill to increase energy production, including electricity, which would make them completely self-sufficient. This energy conversion project is proposed to generate over $25 million dollars in capital investment and create 12 new jobs. BASF is excited about this energy initiative in Suffolk and its potential to increase air quality, enhance revenue for the Suffolk facility and create green jobs locally. The [BASF] Suffolk site has been using the SPSA landfill gases to generate steam power at their water & paper treatment manufacturing facility in Suffolk for over 10 years."

In a separate project, the company has announced plans to place an intermediate-product manufacturing facility in Louisiana to feed into its local production facilities. A company press release says, "BASF is building a new plant for the production of methylamines at its integrated Verbund site in Geismar, Louisiana, that is scheduled to start operations in 2011. The methylamines will serve as raw materials for some 20 different specialty amines produced by BASF at existing facilities in Geismar. The company currently operates three methylamine facilities worldwide with a total annual capacity of 169,000 metric tons. These plants are located at BASF’s Verbund sites in Ludwigshafen, Germany, and Nanjing, China, and at the company’s site in Camaçari, Brazil. The new methylamines plant in Geismar will create 11 new jobs at BASF. In addition, about 250 people will work on the plant in the construction phase."

Bill Pearson and Charlie Waltz are the IAMC Active members with BASF, which ranks 73^rd on Fortune’s Global 500 list and 1^st among chemical companies.

Cummins Contracts with Colliers Bennett & Kahnweiler

Cummins’ headquarters in Columbus, Indiana Source: http://www.krjda.com/text/projectDetail.cfm?id=57

Some large industrial companies manage their global real estate using regional service providers, while others prefer a single contract and point of contact. Cummins selected the second approach. A note in rejournals.com announces, "Cummins, Inc., has named Chicago, Ill.-based Colliers Bennett & Kahnweiler, Inc., as its global real estate services provider, an assignment that includes transaction management, portfolio administration, and lease administration for a multi-million-square-foot portfolio. Alain G. LeCoque, executive vice president of Colliers B&K, will lead the global account team. Cummins serves customers in approximately 190 countries and territories through a network of more than 500 company-owned and independent distributor locations and approximately 5,200 dealer locations."

Todd Clark and Fred Brace are the IAMC Active members with Cummins, Inc., which ranks 181^st on the Fortune-500 list and 3^rd among listed construction and farm equipment makers.

Glaxo Acquires Stiefel Labs

Following the pattern of pharmaceuticals firms extending their product portfolios by buying companies, GlaxoSmithKline has purchased Stiefel Laboratories for its skin-care products and global distribution network. Pharmaprojects.com explains, "Stiefel will retain its name and be joined with GSK's existing dermatology business. The combined operation will significantly boost GSK's presence in the skincare sector, giving it approximately 8 percent of the global dermatology market. The deal also enhances GSK's rather threadbare dermatology pipeline, bringing significantly more clinical-stage projects including two Phase III compounds which Stiefel itself acquired through the acquisition of another specialty dermatology company, Barrier Therapeutics, last year."

Jack Smith and Robert Leis are the IAMC Active members with GlaxoSmithKline, which ranks 151^st on Fortune’s Global-500 list and 3^rd on Fortune’s pharmaceutical companies list.

Boeing’s in-development 787 Dreamliner Source:www.boeing.com

Washington State Mobilizes to Keep Boeing

The Boeing Company is a big employer and major source of pride for the State of Washington. Concerned that the aircraft maker might use the recession as impetus for shifting some operations to other parts of the country, the state’s governor is acting preemptively to keep Boeing in place. Heraldnet.com reports, "The governor created an aerospace council Thursday through an executive order, charging its members with keeping the Boeing Co. and related firms in the state. … [Governor] Gregoire established the council to keep Washington competitive with other states, particularly in the South, that may be trying to woo Boeing. The legislature considered but never passed a bill calling for the council. Likewise, lawmakers failed to give the OK for an aerospace institute, as outlined in legislation from Rep. Mike Sells, D-Everett."

Jeff Adelson is the IAMC Active member with Boeing, which ranks 34^th on the Fortune-500 list and 1^st on Fortune’s list of defense and aerospace companies.

GE’s chairman and CEO Jeffrey Immelt Source: www.ge.com

GE to Open Battery Plant in Upstate NY

General Electric has a reputation for aggressively investing in new services, products and facilities at all points of the business cycle. As if to push aside questions about the company’s health, CEO Jeffrey Immelt personally announced recently GE’s intention to construct a new battery manufacturing plant in New York. In a New York Times blog, Kate Galbraith writes, "General Electric announced today [May 12] a $100 million investment to build a new factory in upstate New York that will make batteries — a sector with huge potential, according to GE’s chairman and chief executive, Jeffrey Immelt. … The batteries to be built at the new factory are not lithium-ion, the type widely considered to be the future of hybrid and electric cars. Instead, they are sodium-based batteries — which will help to power GE’s hybrid locomotives after those are commercialized in 2010. The rationale, explained Mark Little, the director of global research at GE, is that the sodium batteries store ‘a heck of a lot more energy’ than lithium-ion ones. (Think of the size difference between a locomotive and a Prius, Mr. Little said.)"

Terry Rees is the IAMC Active member with General Electric, which ranks 5^th on the Fortune-500 list and 1^st on Fortune’s list of diversified financial companies.

Air Products and Chemicals’ headquarters campus in Allentown, Pa. Source: www.icis.com

Air Products and Chemicals Streamlines

Looking for ways to trim costs and generate cash, Air Products and Chemicals, Inc., has sold some of its medical-related operations. The Philadelphia Inquirer reports, "Allentown-based Air Products & Chemicals Inc. has sold all of its intravenous and related treatment business and parts of its respiratory and home medical equipment business to OptionCare Enterprises Inc., a subsidiary of Walgreen Co. …The transaction includes Air Products' ownership interests in certain of the companies previously operated as part of the Air Products Healthcare L.L.C. Group, notably the home infusion therapy business of American Homecare Supply, Georgia (serving Atlanta and northern Georgia); Ultra Care and Dependicare (Chicago metropolitan area); Rx Pharmacy Services and Mosso's Medical Supply Company (Western Pennsylvania and Pittsburgh metropolitan area); Collins I.V. Care (Connecticut); and Air Products Healthcare Pharmacy (Lehigh Valley, Philadelphia metropolitan area and South Jersey)."

Susan Reber is the IAMC Active member with Air Products and Chemicals, which ranks 248^th on the Fortune-500 list and 5^th on Fortune’s list of chemicals companies.

DuPont Opens China Solar Energy Research Center

Few countries need alternative energy sources more than China. On the one hand, it’s the world’s fastest growing large economy, but on the other, it has limited internal energy resources to fuel its growth. So, it’s enthusiastically pursuing alternative energies. A recent news item notes, "DuPont Co. has opened a technical center for the solar energy market at its Shanghai research and development center, and said it expects growth in China's crystalline silicone photovoltaic solar power system manufacturers. … About one-third of the world's output for crystalline photovoltaic cells and modules is in China, DuPont said. While the export-oriented Chinese photovoltaic makers took a strong hit in the economic downturn, DuPont said the new China center will build closer links with customers and better integrate research, development and technical support."

Judy Passwaters is the IAMC Active member with DuPont, which ranks 75^th on the Fortune-500 list and 2^nd on Fortune’s list of chemicals companies.

DuPont’s R&D Center in Shanghai, China Source: http://www.panoramio.com/photo/8231924

ConAgra Expands Wisconsin Plant, Adds Jobs

If you’d like evidence that the Fortune-200 ranked food company ConAgra’s shares might be a good defensive buy during the recession, note that the firm is expanding current production capacity. A May 19 Associated Press article carried in the Chicago Tribune says, "In a climate of layoffs and furloughs, ConAgra Food is planning a $28 million expansion in Menomonie [Wisconsin] that will create 30 jobs. ConAgra's addition to its Snack Pack pudding production line, including a new pudding machine with the latest technology, should be finished by December. The company says the new jobs will be in production, maintenance and warehousing. The plant currently employs about 350 people. More than 110 Wisconsin dairy farmers supply milk to the plant, which also produces Swiss Miss hot chocolate and refrigerated pudding."

Jim Doyle is the IAMC Active member with ConAgra, which ranks 188^th on the Fortune-500 list and 3^rd on Fortune’s list of food consumer products companies.

General Mills Plans DC for Social Circle, Ga.

Most companies are willing to make investments in their supply chains even when business is down because the payback and savings begin as soon as the projects come on stream. One example is General Mills’ planned super-sized distribution center a few miles from metropolitan Atlanta. On this, the Walton Tribune says, "International food company General Mills will build a $42 million facility …, creating 112 jobs, the company announced last week. … General Mills will contract with a third-party logistics provider to staff and run the 1.5 million-square-foot distribution center, according to a state press release. The facility will distribute the General Mills family of products throughout the Southeast. One of the world’s leading food companies, General Mills operates in more than 100 countries and markets more than 100 consumer brands, including Cheerios, Häagen-Dazs, Nature Valley, Betty Crocker, Pillsbury, Green Giant, Old El Paso, Progresso, Cascadian Farm and Muir Glen, according to company documents."

Mike Nordstrom is the IAMC Active member with General Mills, which ranks 193^rd on the Fortune-500 list and 4^th on Fortune’s list of food consumer products companies.

* With each project, we provide the name(s) of the IAMC member(s) from the organization(s) involved. This is for information purposes. We are not indicating or suggesting that the member was involved in the project.